Sri Vijaya Puram, Sept 22: In a significant move aimed at strengthening regional air connectivity in the Andaman and Nicobar Islands, the Andaman and Nicobar Administration has signed a Memorandum of Understanding (MoU) with the Ministry of Civil Aviation (MoCA) and the Airports Authority of India (AAI) under RCS–UDAN 6.0. The development was highlighted by the Lieutenant Governor of the Andaman and Nicobar Islands in a post on X. As per sources the MoU was signed on 21 September 2026 night and was submitted today to the Ministry.
According to the Lieutenant Governor, the initiative is expected to promote affordable air connectivity between the islands through seaplanes and small fixed-wing aircraft, opening new possibilities for connectivity across the geographically dispersed island territory. The Administration said the initiative could provide fresh impetus to tourism, trade, employment, health services and education, while contributing to more inclusive development of the islands.
Under the Modified UDAN framework, airline operators will receive Viability Gap Funding (VGF) support for five years. For the Union Territory, the VGF arrangement provides for 90 per cent central support and 10 per cent contribution from the UT. The Airports Authority of India will also provide support for operation and maintenance of airports and water aerodromes.
As part of the arrangement, the Union Territory will provide 1 per cent VAT on Aviation Turbine Fuel (ATF) and extend support for firefighting, security, utilities and other essential infrastructure required for operations. The measures are intended to improve the viability of regional air services in areas where conventional commercial aviation may face operational and financial challenges.
The Regional Connectivity Scheme–UDAN (Ude Desh ka Aam Nagrik) was launched in 2016 to improve air connectivity to underserved and unserved regions. The scheme uses financial support and other concessions to encourage airline operators to establish regional routes. The Andaman and Nicobar Islands have been included among the remote and island regions that have received special consideration under the regional connectivity framework.
The Union Government approved the Modified UDAN scheme in March 2026, with an expanded focus on regional connectivity and infrastructure. The revised framework provides for longer VGF support of five years and includes support for smaller airports and helipads in remote, hilly and island areas. The scheme is also intended to expand connectivity to new destinations over the coming years.
The latest MoU could therefore provide a framework for introducing or expanding seaplane and small-aircraft services within the Andaman and Nicobar Islands, particularly where geographical conditions make conventional airport-based connectivity difficult. The initiative is also significant in the context of earlier efforts to establish seaplane operations in India, which have faced commercial and operational challenges.
